THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THAT THE INFORMATION MUST BE READ IN CONJUNCTION WITH THE SECTION HEADED ‘‘WARNING’’ ON THE COVER OF THIS DOCUMENT.

APPENDIX III PROPERTY VALUATION REPORT

The following is the text of a letter, summary of values and valuation certificates prepared for the purpose of incorporation in this document received from AVISTA Valuation Advisory Limited, an independent valuer, in connection with its valuation of the property interests as at March 31, 2020.

[•] 2020

The Board of Directors Canggang Railway Limited Yangzhuang Station Yangerzhuang Town City Province the PRC

Dear Sirs/Madams,

INSTRUCTIONS

In accordance with the instructions for us to value the property interests held by Canggang Railway Limited (滄港鐵路有限公司)(the‘‘Company’’) and its subsidiaries (hereinafter together referred to as the ‘‘Group’’) in the People’s Republic of China (the ‘‘PRC’’), we confirm that we have carried out inspections, made relevant enquiries and searches and obtained such further information as we consider necessary for the purpose of providing you with our opinion of the market values of the property interests as at March 31, 2020 (the ‘‘Valuation Date’’).

PREMISES OF VALUE

The valuation is our opinion of market value which is defined by the Hong Kong Institute of Surveyors as ‘‘the estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm’s length transaction, after proper marketing and where the parties had each acted knowledgeably, prudently, and without compulsion’’.

BASIS OF VALUATION

In valuing the property interests, we have complied with all the requirements set out in Chapter 5 and Practice Note 12 of the Rules Governing the Listing of Securities issued by The Stock Exchange of Hong Kong Limited (the ‘‘Listing Rules’’), the HKIS Valuation Standards (2017 Edition) published by the Hong Kong Institute of Surveyors and the International Valuation Standards published from time to time by the International Valuation Standards Council.

Our valuations exclude an estimated price inflated or deflated by special terms or circumstances such as atypical financing, sale and leaseback arrangement, special considerations or concessions granted by anyone associated with the sale, or any element of special value or costs of sale and purchase or offset for any associated taxes.

III-1 THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THAT THE INFORMATION MUST BE READ IN CONJUNCTION WITH THE SECTION HEADED ‘‘WARNING’’ ON THE COVER OF THIS DOCUMENT.

APPENDIX III PROPERTY VALUATION REPORT

CATEGORISATION OF PROPERTY INTERESTS

In the course of our valuation, the appraised property interests have been categorized according firstly to type of interests held by the Company, which in turn being classified into the following groups:

Group I – Property interests held and occupied by the Group in the PRC

VALUATION METHODOLOGY

In the course of our valuation, unless otherwise stated, we have valued the properties in their designated uses with the understanding that the properties will be used as such (hereafter referred to as ‘‘continued uses’’).

Due to the specific nature and uses of the buildings and structures of the property interests that were designated and constructed and the particular location in which they are situated, there are unlikely relevant market comparable sales readily available. The property interests have been valued on the basis of depreciated replacement cost. Depreciated replacement cost is defined as ‘‘the current cost of replacement (reproduction) of a property less deductions for physical deterioration and all relevant forms of obsolescence and optimization’’. It is based on an estimate of the market value for the existing use of the land, plus the current cost of replacement (reproduction) of the improvements, less deductions for physical deterioration and all relevant forms of obsolescence and optimization. The depreciated replacement cost of the property interests is subject to adequate potential profitability of the concerned business.

TITLE INVESTIGATION

We have been provided by the Company with copy of extract of the title documents relating to the property interests. Where possible, we have examined the original documents to verify the existing title to the property interests in the PRC and any material encumbrances that might be attached to the property interests or any amendments which may not appear on the copies handed to us.

However, we have not searched the original documents to verify ownership or to ascertain any amendment. Due to the current registration system of the PRC under which the registration information is not accessible to the public, no investigation has been made for the title of the property interests in the PRC and the material encumbrances that might be attached. In the course of our valuation, we have relied considerably on the legal opinion given by the Company’s PRC legal adviser – Commerce & Finance Law Office, concerning the validity of title of the properties in the PRC.

III-2 THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THAT THE INFORMATION MUST BE READ IN CONJUNCTION WITH THE SECTION HEADED ‘‘WARNING’’ ON THE COVER OF THIS DOCUMENT.

APPENDIX III PROPERTY VALUATION REPORT

SITE INVESTIGATION

We have inspected the exterior and, where possible, the accessible portions of the interior of the property being appraised. The inspection was carried out by Mr. Gerrard Zhao (Analyst of AVISTA Valuation Advisory Limited), during the date August 5, 2019 to August 8, 2019. However, we have not been commissioned to carry out structural survey nor to arrange for an inspection of the services. We are, therefore, not able to report whether the property is free of rot, infestation or any other structural defects. We formulate our view as to the overall conditions of the property taking into account the general appearance, the apparent standard and age of fixtures and fittings and the existence of utility services. Hence it must be stressed that we have had regard to you with a view as to whether the buildings are free from defects or as to the possibility of latent defects which might affect our valuation. In the course of our inspection, we did not note any serious defects. No tests were carried out on any of the services. We have assumed that utility services, such as electricity, telephone, water, etc., are available and free from defect.

We have not arranged for any investigation to be carried out to determine whether or not high alumina cement concrete or calcium chloride additive or pulverized fly ash, or any other deleterious material has been used in the construction of the property. We are therefore unable to report that the property is free from risk in this respect. For the purpose of this valuation, we have assumed that deleterious material has not been used in the construction of the property.

We have not been commissioned to carry out detailed site measurements to verify the correctness of the land or building areas in respect of the property but have assumed that the areas provided to us are correct. Based on our experience of valuation of similar property, we consider the assumptions so made to be reasonable.

Moreover, we have not carried out any site investigation to determine the suitability of the ground conditions or the services for any property development erected or to be erected thereon. Nor did we undertake archeological, ecological or environmental surveys for the property interests. Our valuation is prepared on the assumption that these aspects are satisfactory and that no extraordinary expenses or delays will be incurred during the construction period. Should it be discovered that contamination, subsidence or other latent defects exists in the property or on adjoining or neighboring land or that the property had been or are being put to contaminated use, we reserve right to revise our opinion of value.

III-3 THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THAT THE INFORMATION MUST BE READ IN CONJUNCTION WITH THE SECTION HEADED ‘‘WARNING’’ ON THE COVER OF THIS DOCUMENT.

APPENDIX III PROPERTY VALUATION REPORT

SOURCE OF INFORMATION

Unless otherwise stated, we shall rely to a considerable extent on the information provided to us by the Company or the legal or other professional advisers on such matters as statutory notices, planning approval, zoning, easements, tenure, completion date of building, development proposal, identification of property, particulars of occupation, site areas, floor areas, matters relating to tenure, tenancies and all other relevant matters. Dimensions, measurements and areas included in the valuation certificates are based on information contained in the documents provided to us and are therefore approximations and for reference only. We have not searched original plans, developer brochures and the like to verify them.

We have had no reason to doubt the truth and accuracy of the information provided to us by the Company. We have also sought confirmation from the Company that no material factors have been omitted from the information supplied. We consider that we have been provided with sufficient information to reach an informed view and we have no reason to suspect that any material information has been withheld.

VALUATION ASSUMPTIONS

For the property which is held under long term land use rights, we have assumed that transferable land use rights in respect of the property interests at nominal land use fees has been granted and that any premium payable has already been fully settled. Unless stated as otherwise, we have assumed that the respective title owner of the properties have an enforceable title of the property interests and have free and uninterrupted rights to occupy, use, sell, lease, charge, mortgage or otherwise dispose of the properties without the need of seeking further approval from and paying additional premium to the Government for the unexpired land use term as granted. Unless noted in the report, vacant possession is assumed for the property concerned.

Moreover, we have assumed that the design and construction of the property is/will be in compliance with the local planning regulations and requirements and had been/would have been duly examined and approved by the relevant authorities.

Continued uses assumes the property will be used for the purposes for which the property is designed and built, or to which they are currently adapted. The valuation on the property in continued uses does not represent the amount that might be realized from piecemeal disposition of the property in the open market.

No environmental impact study has been ordered or made. Full compliance with applicable national, provincial and local environmental regulations and laws is assumed. Moreover, it is assumed that all required licences, consents or other legislative or administrative authority from any local, provincial or national government or private entity or organization either have been or can be obtained or renewed for any use which the report covers.

It is also assumed that all applicable zoning and use regulations and restrictions have been complied with unless nonconformity has been stated, defined and considered in the valuation report. In addition, it is assumed that the utilization of the land and improvements are within the boundaries of the property described and that no encroachment or trespass exists, unless noted in the report.

III-4 THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THAT THE INFORMATION MUST BE READ IN CONJUNCTION WITH THE SECTION HEADED ‘‘WARNING’’ ON THE COVER OF THIS DOCUMENT.

APPENDIX III PROPERTY VALUATION REPORT

No allowance has been made in our report for any charges, mortgages or amounts owing on any of the property interests valued nor for any expenses or taxation which maybeincurredineffectingasale. Unless otherwise stated, it is assumed that the property is free from encumbrances, restrictions and outgoings of an onerous nature, which could affect their values.

We have further assumed that the property was not transferred or involved in any contentious or non-contentious dispute as at the valuation date. We have also assumed that there was not any material change of the properties in between dates of our inspection and the valuation date.

CURRENCY

Unless otherwise stated, all amounts are denominated in Renminbi (RMB). Our valuations are summarized below and the valuation certificates are attached.

Yours faithfully, For and on behalf of AVISTA Valuation Advisory Limited Sr Oswald W Y Au MHKIS (GP) AAPI MSc (RE) Registered Professional Surveyor (GP) Director

Note: Mr. Oswald W Y Au holds a Master’s Degree of Science in Real Estate from the University of Hong Kong. He is also a member of Hong Kong Institute of Surveyors (General Practice) and Associate Member of Australian Property Institute. In addition, he is a Registered Professional Surveyor (General Practice) registered with Surveyors Registration Board. He has over 10 years of property valuation experience in Hong Kong, the PRC, the U.S., Canada, East and Southeast Asia including Singapore, Japan and Korea.

III-5 THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THAT THE INFORMATION MUST BE READ IN CONJUNCTION WITH THE SECTION HEADED ‘‘WARNING’’ ON THE COVER OF THIS DOCUMENT.

APPENDIX III PROPERTY VALUATION REPORT

SUMMARY OF VALUES

Group I – Property interests held and occupied by the Group in the PRC

Market Value Market value Attributable in existing to the Group state as at Interest as at March 31, Attributable March 31, No. Property 2020 to the Group 2020 RMB RMB

1. Thirty-three parcels of land with a railway 737,320,000 100% 737,320,000 located at Hebei Province, the PRC

2. A block of building and two parcels of land 239,090,000 100% 239,090,000 with structures located at South side of Shuohuang Railway, Yang Zhuang Village, Huanghua City, Hebei Province, the PRC

3. A railway located at Yangerzhuang County, No 100% No Huanghua City, Hebei Province, the PRC commercial commercial value value

4. A parcel of land with a railway located at 66,130,000 51% 33,726,000 Yangerzhuang County, Huanghua City, Hebei Province, the PRC

Grand Total: 1,042,540,000 1,010,136,000

III-6 THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THAT THE INFORMATION MUST BE READ IN CONJUNCTION WITH THE SECTION HEADED ‘‘WARNING’’ ON THE COVER OF THIS DOCUMENT.

APPENDIX III PROPERTY VALUATION REPORT

VALUATION CERTIFICATE

Group I – Property interests held and occupied by the Group in the PRC

Market value in Particulars of existing state as No. Property Description and tenure occupancy at March 31, 2020 RMB

1. Thirty-three The property comprises 33 Asatthedateof 737,320,000 parcels of land parcels of land with the total site valuation, the (100% interest with a railway area of approximately property was attributable to the located at Hebei 2,173,103.19 sq.m. and there is a occupied by the Company: Province, the PRC railway, various buildings & Group. RMB737,320,000) structures and construction work (CIP) erected thereon which was completed in between 1992 – 2017.

The railway is between North Railway Station and Gangkou Railway Station in Hebei Province with the total length of approximately 96.585 km (including the main track 87.405 km, 56.100 km station track which alongside as a part of the main track, the branch line track 7.080 km and 2.100 km respectively).

There are 12 numbers of railway station and various ancillary structures include railway signaling, color light signal, bridge culvert and bridge.

The land use right of the property has been granted and allocated for railway use. There are 30 parcels of land granted for a term expiring on April 11, 2069. For the remaining 3 parcels of land have been allocated for railway use.

III-7 THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THAT THE INFORMATION MUST BE READ IN CONJUNCTION WITH THE SECTION HEADED ‘‘WARNING’’ ON THE COVER OF THIS DOCUMENT.

APPENDIX III PROPERTY VALUATION REPORT

Notes:

1. Pursuant to the State-owned Land Use Right Grant Contract dated March 21, 2016, the land use right with the site area of approximately 873,936.00 sq.m. have been contracted to be granted to Cangzhou Canggang Railway Co., Ltd. (滄州滄港鐵 路有限公司) (hereinafter referred to as ‘‘Canggang Company’’), a wholly owned subsidiary of the Company, for railway use at a land premium of RMB45,000,000.

2. Pursuant to the State-owned Land Use Right Grant Contract dated April 20, 2018, the land use right with the site area of approximately 25,165.00 sq.m. have been contracted to be granted to Canggang Company for railway use at a land premium of RMB1,300,000.

3. Pursuant to three Land Use Right Transfer Contracts entered into between Chengyu Railway Co., Ltd. (滄州市騁宇鐵路有限 責任公司)(hereinafterreferredtoas‘‘Chengyu Company’’) and Canggang Company, the land use right with the total site area of approximately 181,615.98 sq.m. have been contracted to be transferred to Canggang Company for railway use at a total land premium of RMB14,674,481. The details are tabulated as below:

No. Address Site Area Consideration Usage Agreement Date (sq.m.) (RMB)

1) Tangwa Village, Zhongjie Industrial 82,919.38 4,343,317.00 Railway August 29, 2018 Zone, Huanghua City, Hebei Province, the PRC

2) Western side of Haifang West Road, 69,978.30 7,550,659.00 Railway March 21, 2016 Bohaixin , Cangzhou City, Hebei Province, the PRC

3) The junction of Weisan Road and 28,718.30 2,780,505.00 Railway March 21, 2016 Jingsi Road, Lingang Economic Technical Development Zone, Cangzhou City, Hebei Province, the PRC

4. Pursuant to the Land Use Right Transfer Contracts entered into between Chengyu Company and Canggang Company dated July 22, 2019, the land use rights with the total site area of approximately 66,410.04 sq.m. have been contracted to be transferred to Canggang Company for railway use at a total land premium of RMB7,920,000.

5. Pursuant to the Land Use Right Transfer Contracts entered into between Chengyu Company and Canggang Company dated August 22, 2019, the land use rights of three parcels of land with the total site area of approximately 19,480.26 sq.m. have been contracted to be transferred to Canggang Company for railway use at a total land premium of RMB4,612,000. The details are tabulated as below:

No. Land Parcel Consideration Site Area Usage (sq.m.)

1) Cangzhan Lingang Economic Technological RMB2,312,000 9,801.59 Railway Development Area 2) Cangzhan Lingang Economic Technological RMB1,230,000 5,190.00 Railway Development Area 3) Cangzhan Lingang Economic Technological RMB1,070,000 4,488.67 Railway Development Area

III-8 THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THAT THE INFORMATION MUST BE READ IN CONJUNCTION WITH THE SECTION HEADED ‘‘WARNING’’ ON THE COVER OF THIS DOCUMENT.

APPENDIX III PROPERTY VALUATION REPORT

6. Pursuant to 30 numbers of State-owned Land Use Rights Certificates and/or Real Estate Ownership Certificates, the land use rights of 30 parcels of land with the total site area of approximately 1,166,606.89 sq.m, have been vested to Canggang Company. The details are tabulated as below:

No. Certificates No. Expiry Date Nature Site Area Issued Date Usage (sq.m.)

1) Huang Guo Yong (2016) Di No. 00079 March 20, 2066 Granted 78,485.07 June 29, 2016 Railway 2) Huang Guo Yong (2016) Di No. 00080 March 20, 2066 Granted 31,538.59 June 29, 2016 Railway 3) Huang Guo Yong (2016) Di No. 00081 March 20, 2066 Granted 4,289.46 June 29, 2016 Railway 4) Huang Guo Yong (2016) Di No. 00082 March 20, 2066 Granted 39,858.55 June 29, 2016 Railway 5) Huang Guo Yong (2016) Di No. 00083 March 20, 2066 Granted 56,886.13 June 29, 2016 Railway 6) Huang Guo Yong (2016) Di No. 00092 March 20, 2066 Granted 156,434.17 June 30, 2016 Railway 7) Huang Guo Yong (2016) Di No. 00093 March 20, 2066 Granted 91,526.11 June 30, 2016 Railway 8) Huang Guo Yong (2016) Di No. 00121 March 20, 2066 Granted 43,507.83 August 30, 2016 Railway 9) Ji (2017) Huang Hua Shi Bu Dong Chan March 20, 2066 Granted 81,079.90 November 1, 2017 Railway Quan Di No. 0001827 10) Ji (2017) Huang Hua Shi Bu Dong Chan March 20, 2066 Granted 51,336.90 November 1, 2017 Railway Quan Di No. 0001831 11) Ji (2017) Huang Hua Shi Bu Dong Chan March 20, 2066 Granted 4,908.10 November 1, 2017 Railway Quan Di No. 0001830 12) Ji (2017) Huang Hua Shi Bu Dong Chan March 20, 2066 Granted 36,062.60 November 1, 2017 Railway Quan Di No. 0001829 13) Ji (2017) Huang Hua Shi Bu Dong Chan March 20, 2066 Granted 12,509.00 November 1, 2017 Railway Quan Di No. 0001828 14) Ji (2017) Huang Hua Shi Bu Dong Chan March 20, 2066 Granted 45,723.60 November 1, 2017 Railway Quan Di No. 0001823 15) Ji (2017) Huang Hua Shi Bu Dong Chan March 20, 2066 Granted 105,531.80 November 1, 2017 Railway Quan Di No. 0001822 16) Ji (2017) Huang Hua Shi Bu Dong Chan March 20, 2066 Granted 34,258.00 March 29, 2018 Railway Quan Di No. 0002641 17) Ji (2018) Huang Hua Shi Bu Dong Chan March 20, 2066 Granted 18,356.50 June 28, 2018 Railway Quan Di No. 0005463 18) Ji (2018) Huang Hua Shi Bu Dong Chan March 20, 2066 Granted 3,460.80 June 28, 2018 Railway Quan Di No. 0005464 19) Ji (2018) Huang Hua Shi Bu Dong Chan March 20, 2066 Granted 3,347.50 June 28, 2018 Railway Quan Di No. 0005465 20) Ji (2018) Cang Zhou Bo Hai Xin Qu Bu June 25, 2068 Granted 28,718.30 November 26, 2018 Railway Dong Chan Quan Di No. 0002802 21) Ji (2018) Huang Hua Shi Bu Dong Chan October 16, 2067 Granted 69,978.30 May 10, 2018 Railway Quan Di No. 0002074 22) Ji (2018) Cang Zhou Bo Hai Xin Qu Bu February 22, 2068 Granted 24,460.65 November 27, 2018 Railway Dong Chan Quan Di No. 0002799 23) Ji (2018) Cang Zhou Bo Hai Xin Qu Bu February 22, 2068 Granted 2,639.79 November 27, 2018 Railway Dong Chan Quan Di No. 0002798 24) Ji (2018) Cang Zhou Bo Hai Xin Qu Bu February 22, 2068 Granted 16,287.48 November 27, 2018 Railway Dong Chan Quan Di No. 0002800 25) Ji (2018) Cang Zhou Bo Hai Xin Qu Bu February 22, 2068 Granted 18,124.41 November 27, 2018 Railway Dong Chan Quan Di No. 0002797 26) Ji (2018) Cang Zhou Bo Hai Xin Qu Bu February 22, 2068 Granted 21,407.05 November 27, 2018 Railway Dong Chan Quan Di No. 0002801 27) Ji (2019) Cang Zhou Shi Bu Dong April 11, 2069 Granted 66,410.04 September 11, 2019 Railway Chan Quan Di No. 0031023 28) Ji (2020) Cang Zhou Shi Bu Dong May 31, 2068 Granted 9,801.59 January 15, 2020 Railway Chan Quan Di No. 0001721 29) Ji (2020) Cang Zhou Shi Bu Dong May 31, 2068 Granted 5,190.00 January 15, 2020 Railway Chan Quan Di No. 0001727 30) Ji (2020) Cang Zhou Shi Bu Dong May 31, 2068 Granted 4,488.67 January 15, 2020 Railway Chan Quan Di No. 0001790

7. Pursuant to the Land Use Right Agreement entered into between Chengyu Company and Canggang Company dated August 12, 2019, the land use rights of 3 parcels allocated land with a total site area of approximately 1,006,496.30 sq.m. have been vested for a term either (i) 20 years commencing from the contract date or (ii) the date before Chengyu Company transfer the land parcel to Canggang Company for railway use without compensation. The details are set out as follows:

No. Land Parcel Site Area Usage (sq.m.)

1) Cang County, Cangzhou City 548,626.90 Railway 2) Xinhua District, Cangzhou City 410,875.39 Railway 3) Cang County, Cangzhou City 46,994.00 Railway

III-9 THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THAT THE INFORMATION MUST BE READ IN CONJUNCTION WITH THE SECTION HEADED ‘‘WARNING’’ ON THE COVER OF THIS DOCUMENT.

APPENDIX III PROPERTY VALUATION REPORT

8. In valuation of the property, we have attributed no commercial value to the railway with the total length of approximately 32.78 km which have not obtained the land use right certificate mentioned in Notes No. 7 as at the Valuation Date. However, for reference purpose, we are of the opinion that the depreciated replacement cost of the railway which is situated on the land parcels mentioned in Notes No. 7 as at the date of valuation would be RMB302,610,000 assuming all relevant title certificates have been obtained and the railway could be freely transferred.

9. In the valuation of the property, we have attributed no commercial value to the CIP which has not obtained any title certificate. However, for reference purpose, we are of the opinion that the reference value of the CIP as at the date of valuation would be RMB648,000 assuming all relevant title certificate have been obtained and could be freely transferred.

10. We have been provided with a legal opinion regarding the property interest by the Company’s PRC legal advisers, which contains, inter alia, the following:

a. The Company has legally obtained the State-owned Land Use Rights Certificates and/or Real Estate Ownership Certificates and has the legal right of the land use right of the land parcels mentioned in Notes No. 6; and

b. According to the interviews with local authority on June 19, 2019, July 2, 2019 and February 24, 2020, the government approved Chengyu Company vested the land use right mentioned in Notes No. 7 to Canggang Company for railway use without compensation.

11. A summary of major certificates/licenses is shown as follow:

a. State-owned Land Use Rights Certificate/Real Estate Ownership Certificates Partial

12. In our valuation, we have made reference to some transaction price references of land comparables in the subject and nearby development. We have adopted the range of unit rates between RMB 330 to RMB 360 per sq.m. The unit rates assumed by us are consistent with the said price reference. Due adjustments to the unit rates of those price reference have been made to reflect factors including but not limited to time, location and size in arriving at the key assumptions.

III-10 THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THAT THE INFORMATION MUST BE READ IN CONJUNCTION WITH THE SECTION HEADED ‘‘WARNING’’ ON THE COVER OF THIS DOCUMENT.

APPENDIX III PROPERTY VALUATION REPORT

VALUATION CERTIFICATE

Market value in Particulars of existing state as No. Property Description and tenure occupancy at March 31, 2020 RMB

2. A block of The property comprises two Asatthedateof 239,090,000 building and two parcels of land with the total site valuation, the (100% interest parcels of land area of approximately property was attributable to the with structures 515,271.40 sq.m. and a block of occupied by the Company: located at South building erected thereon which Group. RMB239,090,000) side of Shuohuang was completed in about 2010. Railway, Yang Zhuang Village, The building has a gross floor Huanghua City, area of approximately 4,330.78 Hebei Province, sq.m. which is an office the PRC building.

The ancillary structures mainly include open coal storage yard, water tanks and car parking spaces.

The land use rights of the property has been granted for a term commencing from January 27, 2010 and expiring on January 26, 2060 for storage use.

Notes:

1. Pursuant to two numbers of Real Estate Ownership Certificate – Ji (2017) Huang Hua Shi Bu Dong Chan Quan Di No. 0000561 dated August 11, 2017 and Ji (2017) Huang Hua Shi Bu Dong Chan Quan Di No. 0000663 dated August 17, 2017, the land use rights of a parcel of land with the site area of approximately 515,271.40 sq.m. and the property with the gross floor area of approximately 4,330.78 sq.m., have been vested to Canggang Company for a term commencing from January 27, 2010 and expiring on January 26, 2060 for storage use.

2. We have been provided with a legal opinion regarding the property interest by the Company’s PRC legal advisers, which contains, inter alia, the following:

a. The Company has legally obtained the Real Estate Ownership Certificate and has the legal right of the property.

3. A summary of major certificates/licenses is shown as follow:

a. Real Estate Ownership Certificate Yes

4. In our valuation, we have made reference to some transaction price references of land comparables in the subject and nearby development. We have adopted the range of unit rates between RMB180 to RMB240 per sq.m. The unit rates assumed by us are consistent with the said price reference. Due adjustments to the unit rates of those price reference have been made to reflect factors including but not limited to time, location and size in arriving at the key assumptions.

III-11 THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THAT THE INFORMATION MUST BE READ IN CONJUNCTION WITH THE SECTION HEADED ‘‘WARNING’’ ON THE COVER OF THIS DOCUMENT.

APPENDIX III PROPERTY VALUATION REPORT

VALUATION CERTIFICATE

Market value in Particulars of existing state as at No. Property Description and tenure occupancy March 31, 2020 RMB

3. A railway located The property comprises a Asatthedateof No Commercial at Yangerzhuang railway and structures in Hebei valuation, the Value County, Huanghua Province with the total length of property was City, Hebei approximately 7.147 km which occupied by the Province, the PRC completed in the third quarter of Group. 2019.

Notes:

1. As informed by the Company, we noted that the Company has prepaid for the land parcel of the property. However, both of the State-owned Land Use Rights Certificate and the State-owned Land Use Right Grant Contract has not been obtained. We lack of information about the land parcel, therefore, we are unable to perform valuation of the land parcel of the property.

2. In the valuation of the property, we have attributed no commercial value to the property which has not obtained any title certificate. However, for reference purpose, we are of the opinion that the reference value of the property as at the date of valuation would be RMB135,820,000 assuming all relevant title certificate have been obtained and could be freely transferred.

3. We have been provided with a legal opinion regarding the property interest by the Company’s PRC legal advisers, which contains, inter alia, the following:

a. According to an interview conducted by the Ministry of Natural Resources of Huanghua City (黃驊市自然資源和規 劃局)(the‘‘Ministry’’) on July 2, 2019, the Ministry is the competent authority about the land parcel of the property, the company has no substantial impediment to apply the State-Owned Land Use Right Certificate. The construction work on the land parcel has not contained a major violation. The Ministry will conduct any form of investigation, the responsibility punishment and/or order for demolition relatively low.

b. According to an interview conducted by the Ministry on June 19, 2019, the Ministry is the competent authority about the construction of the property, the construction planning permit of the property is under application and there is no legal impediment to obtain. The construction work has not contained major violation, the possibility of punishment by the government is relatively low. The construction work will not be subject to order for demolition.

4. A summary of major certificates/licenses is shown as follow:

a. State-owned Land Use Rights Certificate No

III-12 THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THAT THE INFORMATION MUST BE READ IN CONJUNCTION WITH THE SECTION HEADED ‘‘WARNING’’ ON THE COVER OF THIS DOCUMENT.

APPENDIX III PROPERTY VALUATION REPORT

VALUATION CERTIFICATE

Market value in Particulars of existing state as No. Property Description and tenure occupancy at March 31, 2020 RMB

4. A parcel of land The property comprises a parcel At as the date of 66,130,000 with a railway of land with a site area of valuation, the (51% interest located at approximately 151,145.10 sq.m. property was attributable to the Yangerzhuang and there is a railway which occupied by the Company: County, Huanghua were being constructed thereon. Group RMB33,726,000) City, Hebei Province, the PRC The railway has the total length of approximately 1.036 km.

The land use rights of the property has been granted for a term commencing from April 28, 2018 and expiring on April 27, 2068 for storage use.

Notes:

1. Pursuant to the Real Estate Ownership Certificate – Ji (2018) Huang Hua Shi Bu Dong Chan Quan Di No. 0005180 dated June 21, 2018, the land use rights of a parcel of land with the site area of approximately 151,145.10 sq.m., have been vested to Hebei Jinghai International Logistics Development Co., Ltd. (河北京海國際物流發展有限公司) (hereinafter referred to as ‘‘Jinghai Logistics’’), a 51% owned subsidiary of the Company, for a term commencing from April 28, 2018 and expiring on April 27, 2068 for storage use.

2. In the valuation of this property, we have attributed no commercial value to the CIP which have not obtained any title certificate. However, for reference purpose, we are of the opinion that the reference value of the property, as if completed as at the date of valuation under the development proposals and assuming it can be freely transferred in the market, would be RMB13,000.

3. We have been provided with a legal opinion regarding the property interest by the Company’s PRC legal advisers, which contains, inter alia, the following:

a. The Company has legally obtained the Real Estate Ownership Certificate and has the legal right of the property.

b. According to an interview conducted by the Ministry on June 19, 2019, the Ministry is the competent authority about the construction of the property, the construction planning permit of the property is under application and there is no legal impediment to obtain. The construction work has not contained major violation, the possibility of punishment by the government is relatively low. The construction work will not be subject to order for demolition.

4. A summary of major certificates/licenses is shown as follow:

a. State-owned Land Use Rights Certificate Yes

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